... of goods and services increased so rapidly, people lost their confidence within the economy. It was calmed just when thigh monetary and disinflatory policy was introduced. Fortunately, with government involvement and concrete disinflatory laws, this can hardly happen in developed market economies. In Slovakia the inflation rate is around 4% which is hardly noticeable and has hardly if any impact on our everyday lives on short term basis. Unemployment might as well affect the entire economy in negative way. When the rate reaches higher percentage than 25%, misallocations of production resources happens, resulting in downturn of the entire economy, inflation to skyrocket (prices to arise), and GDP to fall. These macroeconomic factors do strongly influence the economy. Independent Slovakia has experienced several percentile fluctuations of GDP, inflation, and unemployment. The development of each indicator and its impact will be analyzed in later sections. To fully comprehend the development of ...

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